EddyMoney87
New member
Beijing determined to retain leverage over supply by preventing buyers from building large inventories
China is warning western companies against stockpiling rare earths or risk even greater shortages, as Beijing tightly controls supplies of the metals vital to electric vehicles and other civilian and defence sectors.
China has told foreign companies not to hoard rare earths and their products, which are mostly magnets used in electric motors and other critical tech, as fears about Beijing’s export curbs drive up demand, according to two people familiar with the matter.
“Beijing is telling companies they cannot go out and build huge inventories in rare earths, or they will face shortages,” one of the people said.
The other person familiar with the matter said Chinese authorities were deliberately limiting approved export volumes to prevent foreign stockpiling. “This will be a leverage point from now on,” they said.
Beijing’s efforts to prevent companies from building up large inventories, which would give them more flexibility to respond to shortages and price fluctuations, show its determination to maintain maximum leverage in a sector, the people said.
China placed seven categories of medium and heavy rare earths on an export control list in April in response to US President Donald Trump’s “liberation day” tariffs. That move, which also covered permanent magnets and other finished products, triggered shortages across a range of industries, particularly automobiles.
China is warning western companies against stockpiling rare earths or risk even greater shortages, as Beijing tightly controls supplies of the metals vital to electric vehicles and other civilian and defence sectors.
China has told foreign companies not to hoard rare earths and their products, which are mostly magnets used in electric motors and other critical tech, as fears about Beijing’s export curbs drive up demand, according to two people familiar with the matter.
“Beijing is telling companies they cannot go out and build huge inventories in rare earths, or they will face shortages,” one of the people said.
The other person familiar with the matter said Chinese authorities were deliberately limiting approved export volumes to prevent foreign stockpiling. “This will be a leverage point from now on,” they said.
Beijing’s efforts to prevent companies from building up large inventories, which would give them more flexibility to respond to shortages and price fluctuations, show its determination to maintain maximum leverage in a sector, the people said.
China placed seven categories of medium and heavy rare earths on an export control list in April in response to US President Donald Trump’s “liberation day” tariffs. That move, which also covered permanent magnets and other finished products, triggered shortages across a range of industries, particularly automobiles.
